SBA Loan Pet Store Finds A New Owner
Author: Valerie Mellema
Date posted: 11.26.22

Pet stores are a joyful place for the many people who count furry and scaled animals as family members. In a small city in the Midwest, one pet store had been a staple of the community for over a decade. It was the place to go when you wanted to adopt a pet, buy pet supplies, and do similar things. Nobody would expect that the doors would be shut after so many years of business.

New Owners Are Needed

 

It turns out that the original owners of the popular pet store decided to make a move across the country. The doors to the pet store were closed and it seemed as if the business would no longer be available for patrons in the city.

 

Thankfully, someone stepped in to take charge of the situation. A man who had previous management experience wanted to take on reopening the pet shop. The only problem was that it would cost a good chunk of change to do it. While the potential new owner had some savings to put into it, he wouldn’t have enough to handle it all on his own.

 

What Does It Take to Reopen a Pet Store?

 

Before the man interested in the pet store jumped into the process, he researched to see what kind of investment would be needed. In addition to leasing the building, it would need to be stocked and staffed. It seemed like something that could add up fast.

 

On the other hand, the pet store had always been profitable so it seemed like a gamble worth taking. After looking into the price for all the pet shop needs, he determined he would need about $500,000 to get things going smoothly so the store could run for decades more.

Where Will the Money Come From?

 

Starting a business can be a challenge. One of the difficulties is choosing the right form of financing. Since the man who wanted to bring back the pet store was already doing research into his options, he started looking at the pros and cons of different loans and alternatives to traditional loans.

 

In the end, an SBA loan piqued his interest and seemed like a good option for what he was about to undertake. All he needed to do from there was choose a specific option.

 

The Decision to Go with an SBA 7(a) Loan

 

The 7(a) loan was a good choice for multiple reasons. It’s the most common loan program through the SBA and offers financial assistance for small businesses that have special requirements. It’s a top choice when real estate is part of the purchase, which worked well in this case as the biggest expense was the store itself.

 

With the SBA 7(a) loan, the repayment terms are flexible and the interest rates are highly competitive. Due to a partial guarantee from the SBA, there are also usually less stringent lending requirements.

How the Pet Store Is Doing Now

 

Getting the SBA 7(a) loan was easier than expected and the pet store was purchased shortly after. It took some time to get staff and supplies in place but the town once again had a loved pet store available for everyone’s cats, dogs, birds, reptiles, and more.

 

Months later, the business was booming and it seems it will remain a staple of the community. It just goes to show that a person with a dream can make it a reality. An SBA 7(a) loan is a great choice for businesses of all kinds, whether they cater to critters, humans, or both.

About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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